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12.13.10 CC Reg Meeting MinutesCITY OF SHOREWOOD CITY COUNCIL REGULAR MEETING MONDAY, DECEMBER 13, 2010 MINUTES 1. CONVENE CITY COUNCIL REGULAR MEETING 5755 COUNTRY CLUB ROAD COUNCIL CHAMBERS 7:00 P.M. Mayor Lizee called the meeting to order at 7:05 P.M. A. Roll Call Present. Mayor Lizee; Councilmembers Bailey, Turgeon, Woodruff and Zerby; Attorney Tietjen; City Administrator Heck; Finance Director DeJong; Planning Director Nielsen; Director of Public Works Brown; and Engineer Landim Absent: None. B. Review Agenda Mayor Lizee noted that Bill Mason requested his zoning violation appeal be rescheduled. Administrator Heck stated it will likely be scheduled for the January 24, 2011, City Council meeting. Councilmember Woodruff asked that Item 3.H Adopting the 2011 Enterprise Budgets be added to the agenda. Turgeon moved, Woodruff seconded, approving the agenda as amended. Motion passed 510. 2. APPROVAL OF MINUTES A. City Council Work Session Minutes, November 22, 2010 Turgeon moved, Zerby seconded, Approving the City Council Work Session Minutes of November 22, 2010, as presented. Motion passed 510. B. City Council Executive Session Minutes, December 6, 2010 Woodruff moved, Zerby seconded, Approving the City Council Executive Session Minutes of December 6, 2010, as presented. Motion passed 510. C. City Council Special Meeting Minutes, December 6, 2010 Zerby moved, Woodruff seconded, Approving the City Council Special Meeting Minutes of December 6, 2010, as presented. Motion passed 510. 3. CONSENT AGENDA Mayor Lizee reviewed the items on the Consent Agenda. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES December 13, 2010 Page 2 of 14 Turgeon moved, Zerby seconded, Approving the Motions Contained on the Consent Agenda and Adopting the Resolutions Therein. A. Approval of the Verified Claims List B. Approval of Amendment to Residential Recycling Grant Agreement C. Adopting RESOLUTION NO. 10 -055 "A Resolution Adopting the 2011 — 2015 Capital Improvement Program." D. 2010 Fund Equity Transfers (This was moved to Item 10.G under General/New Business.) E. Setting the Storm Water Pollution Prevention Program Meeting Date F. Authorizing Expenditure of Funds for Replacement Heaters for Boulder Bridge Well House G. Adopting RESOLUTION NO. 10 -057 "A Resolution Authorizing the Mayor and City Administrator to Extend the Electronic Parcel Database Conditional Use License Agreement with Hennepin County for the Year 2011." H. Adopting RESOLUTION NO. 10 -060 "A Resolution Adopting the 2011 Enterprise Fund Budgets." Motion passed 510. 4. MATTERS FROM THE FLOOR There were no matters from the floor presented this evening. 5. PUBLIC HEARING None. 6. REPORTS AND PRESENTATIONS A. Council Recognition Mayor Lizee stated Councilmembers Bailey and Turgeon are completing their service on the City Council this year, noting this is the last regular City Council meeting of the year. On behalf of the Council and the residents of Shorewood, Mayor Lizee thanked Councilmember Bailey for his service as a Councilmember from March 2008 through December 2010 and she presented him with a plaque of appreciation and recognition. On behalf of the Council and the residents of Shorewood, Mayor Lizee thanked Councilmember Turgeon for her service as a Councilmember from January 2001 through December 2010 and she presented her with a plaque of appreciation and recognition. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES December 13, 2010 Page 3 of 14 Mayor Lizee noted that both Councilmembers served on the Planning Commission prior to serving on the Council. Councilmember Turgeon expressed her sincere thanks to the City's taxpayers. She stated it was enjoyable, an honor and a privilege. She wished the residents well and the incoming Council the best of luck, noting Council had challenging times ahead. Councilmember Bailey expressed his appreciation to the residents and City staff. He stated he had an enjoyable time serving on the Council and before that on the Planning Commission. He wished staff well. B. Lake Minnetonka Communications Commission Activities Report by Representative Ken Hendrickson Mayor Lizee introduced Ken Hendrickson, the City's Representative on the Lake Minnetonka Communications Commission (LMCC), who was present to give an update on LMCC activities. Mr. Hendrickson stated the cable franchise for Mediacom is up for renewal in 2013. The renewal process is regulated by both Federal and State law and it takes about 30 — 36 months to do. It's a complex process. He noted the LMCC has not yet received a renewal proposal from Mediacom to provide cable network services. He stated if the LMCC were to deny the renewal that is also a long and involved formal process. He then stated the LMCC has never had more leverage for negotiating. Mr. Hendrickson then stated the LMCC is kicking off a fiber to the premises survey to determine if there is a viable market for this type of service. The LMCC will survey its seventeen member cities plus the Cities of Mound and Wayzata. It will be a 10 minute phone survey of potential residential customers. Mound and Wayzata will be surveyed separately. The member cities will be combined into groups of three — seven cities. Deephaven, Greenwood, Shorewood and Woodland will be one survey group. There are 4,587 households in that group and it will take 355 phone surveys to achieve a plus or minus five percent result. The LMCC budgeted for this effort in its 2011 budget. The LMCC received five responses to the request for proposal it put out. The responder CCG Consultants will be recommended as the preferred firm by the subcommittee to the LMCC Executive Council next week. That firm has a great deal of experience and professionalism and its quote is $25,000. Mr. Hendrickson noted he now serves on the LMCC Executive Committee. Mayor Lizee congratulated him on that. Mr. Hendrickson stated Mediacom has proposed an increase in its late fee, but to date the LMCC has not received any justification for it. There was a Mediacom large outage on November 3r which was caused by a truck loaded with Christmas trees taking down a cable. A second outage was required to fix the cable. On October 27 the LMCC was notified by Mediacom of a $2.00 increase for its basic service and $1.00 for its expanded service. Mr. Hendrickson then stated the cable franchise renewal is for a period of fifteen years. It will be a time of rapid change and he's not sure the LMCC wants to be committed to one service provider for that long. The cable companies are making a concerted effort to make cable franchising a state -wide process. He did not recommend making it a state -wide process. In response to a question from Councilmember Bailey, Mr. Hendrickson explained the LMCC has one cable franchise today. Mound has its own cable franchise and it has agreed to pay some of its franchise fees to the LMCC for the television programming the LMCC does and for the interfacing it does with CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES December 13, 2010 Page 4 of 14 Mediacom. The cable service providers want to make that a state -wide process. The providers would deal with the State of Minnesota rather than organizations like the LMCC. Councilmember Bailey asked what the LMCC's top priorities are in the renewal process. Mr. Hendrickson responded quality of service, an acceptable cost and customer service. 7. PARKS No report was given as there has not been a Park Commission meeting since the last Council meeting. The next meeting is scheduled for December 14, 2010. 8. PLANNING Commissioner Hutchins reported on matters considered and actions taken at the December 7, 2010, Planning Commission meeting (as detailed in the minutes of that meeting). A. Zoning Ordinance Amendment Pertaining to Nonconforming Buildings and Uses Director Nielsen stated the Planning Committee held a public hearing on December 7, 2010, to consider amendments to the City's Zoning Code to update the provisions in the Code relative to nonconforming buildings, structures and uses to comply with State law. The proposed Ordinance will make the Code consistent with State law. The current Ordinance states a nonconforming structure cannot be rebuilt if it's destroyed to more than 50 percent of its value. The intent of the current Ordinance is to bring nonconforming structures into compliance. In 2006 the State law changed and the City became aware of the change this year. The Court has ruled that a city has to allow a nonconforming structure to be rebuilt to its former extent. The City is not obligated to allow the expansion of nonconforming structures and the proposed Ordinance does not allow that. He explained the draft Ordinance contains a provision allowing nonconforming structures to be moved, even if full compliance cannot be achieved, when the move would result in improved compliance with zoning standards. The Planning Commission recommended including this provision. This provision would have some impact on agenda Item 8.0 for the Gideon Cove Homeowners Association (HOA). Turgeon moved, Woodruff seconded, Approving the Fourth Draft of ORDINANCE NO. 472 "An Ordinance Amending the Shorewood Zoning Code as it Pertains to Nonconforming Buildings, Structures and Uses." Councilmember Woodruff stated he has reservations about this but because of the change to the State law in 2006 the City has to change its current Ordinance. The fourth draft of the proposed Ordinance is better than what the City has. Councilmember Bailey expressed he thought it unfortunate that the State law changed. Because of the change the City has lost a valuable tool in making the City more livable. He understood it's uncomfortable for property owners to bring their property into conformance with City Code. He stated he thought the City reduced a lot of clutter by asking property owners to bring things into compliance. The City is now more open. He then stated he thought the Planning Commission did the right thing. The State law is the State law. To the extent possible, he thought the City would be better off by asking property owners to bring things into conformance. Motion passed 510. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES December 13, 2010 Page 5 of 14 B. Zoning Ordinance Amendment Requiring Trash Enclosures Director Nielsen explained the Planning Commission worked on an ordinance amendment requiring trash receptacles to be kept inside an enclosure when located outside. The amendment requires receptacles to be located at the rear or side of a building; not at the front. This does not pertain to single - family or two - family dwellings. There is a provision in the amendment for single - family or two - family dwellings that allows trash receptacles to encroach into the five -yard setback. The amendment recommended by the Commission allows residents to place their receptacles at the curb on the designated refuse collection day and required removal no later than 12 hours after the designated day. He noted Councilmember Woodruff requested the amendment be revised to allow residents to place them at the curb twelve hours before the designated day. He stated the meeting packet contains a copy of the amendment recommended by the Commission as well as a third draft of the amendment which includes the provision recommended by Woodruff. Nielsen noted the Planning Commission did not want the proposed Ordinance to be too onerous for business owners. He also noted business owners would have until July 1, 2011, to come into compliance with the proposed amendment should Council adopt the Ordinance. Notices will be sent out to the owners right away. He stated other than the one person who spoke at the Public Hearing held by the Planning Commission on this matter on December 7 the City did not receive negative feedback on the proposed Ordinance. Woodruff moved, Turgeon seconded, Approving the Third Draft of ORDINANCE NO. 473 "An Ordinance Amending the Shorewood Zoning Code as it Pertains to the Regulation of Trash Receptacles." In response to a comment from Councilmember Bailey, Director Nielsen explained the twelve -hours before provision was added to make the time period for putting the receptacles out and removing them consistent. Nielsen commented that twelve hours seems to be the norm for other cities. Councilmember Zerby stated in Section 2.f2 there is a statement that talks about "The outdoor storage of junk in yards..." The term `junk" is not defined there. Director Nielsen explained that section is not being changed. Nielsen noted that in Chapter 501 in the Code there is a list of what is considered junk. Motion passed 510. C. Variance Request for Gideon Cove Applicant: Gideon Cove Homeowners Association Location: Outlots A -C, Lawtonka Director Nielsen stated Council approved an Ordinance amending the Shorewood Zoning Code as it pertains to nonconforming buildings, structures and uses (Item 8.A on the agenda) earlier this evening. Therefore, a variance request by the Gideon Cove Homeowners Association (HOA) is no longer necessary. This item now becomes a site plan review. Nielsen explained that the HOA proposes the replacement of two nonconforming structures on its common area peninsula on Gideon's Bay with one structure. The proposed structure complies better, but not fully, with the City's zoning standards. The proposed structure would be located further back on the peninsula and provide a setback of slightly more than 31 feet from the shoreline of Lake Minnetonka on each side and 40 feet from the right -of -way of Timber Lane. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES December 13, 2010 Page 6 of 14 Nielsen then explained the Planning Commission asked if the proposed structure is as small as it can be. In particular, the Commission wondered if there is a need for the space in the middle of the storage area between the lockers. The HOA explained it has common equipment that needs to be stored in that area. Nielsen stated the Planning Commission has recommended approval of the site plan as proposed subject to the conditions outlined in the Staff report. Staff recommends the HOA present a landscape plan that would further reduce the impact of the new structure and restore the shoreline where the current buildings are located. The HOA property exists as three outlots with separate property identification numbers. Staff recommends the three parcels be legally combined prior to the permit being issued. He then stated that the Commission recommends the fence that strays onto the right -of -way be moved on to the HOA property. He noted the HOA appears to be agreeable to all three conditions. Mayor Lizee noted representatives from the HOA were present this evening. She asked Director Nielsen what the timeline for this would be if the site plan were approved. Nielsen stated the HOA is looking to construct the new structure in the spring of 2011. Turgeon moved, Woodruff seconded, approving the Gideon Cover Homeowners Association (HOA) site plan subject to the approval of a landscaping plan, the three outlots being legally combined and the fence being moved on to the HOA's property. Motion passed 510. D. Status of Zoning Compliance Applicant: Gale Olson, Jr. Location: 25755 Birch Bluff Road Director Nielsen stated that he and Administrator Heck met with Mr. Gale Olson, Jr. and his mother to discuss the nuisance and zoning violations at 25755 Birch Bluff Road. They discussed a number of the items on the original notice, noting some of the items have been resolved. Since this item was last discussed during the November 22, 2010, Council meeting Mr. Olson has constructed a fence to screen off some of the outdoor storage and he put up another shelter for a small tractor with a front -end loader. Director Nielsen stated this adds to the number of accessory structures on his property, noting this is still an issue that will need to be resolved. Mr. Olson has made progress in trying to resolve the violations. Two vehicles were cited as being in violation. Staff incorrectly recorded the license plate number on one trailer that is actually owned by Mr. Olson. The other vehicle is registered to someone else and is being used by Mr. Olson's brother -in -law who lives in the house. It's on loan to him from another brother -m- law. An effort is underway to transfer the title to the resident brother -in -law. Nielsen then stated Mr. Olson has made progress with regard to the complaint the City received. Staff recommends it continue to work with Mr. Olson toward resolving the other violations. Administrator Heck stated Mr. Olson provided evidence that one structure and some materials stacked around that structure are not on his property. The neighbors cleaned up that area. The equipment that Staff thought did not belong to someone living on the property does belong to them. There was Council consensus to have Staff continue to work with the Mr. Olson E. Zoning Violation Appeal Applicant: Bill Mason Location: 27680 Island View Road CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES December 13, 2010 Page 7 of 14 Mayor Lizee noted that per Bill Mason's request his zoning violation appeal has been rescheduled. It will likely be on the January 24, 2011, City Council meeting agenda. 9. ENGINEERING /PUBLIC WORKS A. Island Sanitary Sewer Repairs Engineer Landini stated during the televising of the sanitary sewer system located out on the Islands 44 defects were identified. He explained that four firms were invited to quote on repairing the defects and three firms provided a quote. The low quote was received from Visu- Sewer, Inc., in an amount of $24,545 to complete the 44 repairs. Landini then stated Staff recommends Council direct Staff to work with Visu- Sewer, Inc, for the sanitary sewer repairs not to exceed $30,000. Bailey moved, Turgeon seconded, directing Staff to work with Visu- Sewer, Inc. for the sanitary sewer repairs for an amount not to exceed $30,000. Councilmember Woodruff asked when Staff anticipates the repairs will be completed. Engineer Landini responded if Council approves this now the purchase order will be issued as early as tomorrow. The start of the actual repairs will depend on the weather. If the weather is too cold the work will be done in the spring. Motion passed 510. 10. GENERAL /NEW BUSINESS A. Cell Tower Lease Rate Discussion Mayor Lizee stated during its November 22, 2010, meeting Council agreed the City's lease rates for telecommunication facilities on the City's water towers should be increased to the highest amount currently being paid by any of the existing carriers. Staff found the highest amount being paid is slightly less than $26,000. Staff recommends the lease rate be increased to $26,000. Councilmember Woodruff stated the lease agreement stipulates the lease rate escalates by five percent every five years for lessees. He suggested that in the future Council discuss annually adjusting all carriers lease rates so that the lease rate for new carriers are not lower than the rates for existing lessees. Woodruff moved, Turgeon seconded, increasing the lease rates for telecommunication facilities on the City's water towers to $26,600 annually. Administrator Heck stated he, Director DeJong and, Director Nielsen discussed adjusting the lease rate annually. Motion passed 510. B. Financing Agreement for Excelsior Fire District Self Contained Breathing Apparatus CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES December 13, 2010 Page 8 of 14 Administrator Heck stated during the November 17, 2010, Excelsior Fire District (EFD) Board meeting the Board changed the replacement cycle for self contained breathing apparatus (SCBA) in the EFD Capital Improvement Program (CIP) to a ten year cycle from a fifteen year cycle and it authorized the acquisition of the SCBAs through a lease - purchase financing arrangement. EFD Chief Gerber and the EFD Board cited the age of the equipment and concerns regarding health and safety as the reasons to replace the equipment in 2011 rather than 2014. The lease - purchase arrangement was discussed and approved because the EFD does not have sufficient funds to purchase the equipment now. Heck said the financial analysis prepared comparing the costs to purchase and lease - purchase was based on a 4.49 financing rate. He explained that he had suggested to Councilmembers Bailey and Zerby, the City's representative and alternate on the EFD Board, that the City should consider financing the acquisition of the equipment on behalf of the EFD at a significantly lower financing rate. This would save the EFD and the EFD member cities money. Heck went on to state that he had spoken with Deephaven City Administrator Young, who is also the contract Fiscal Agent for the EFD, about the City potentially financing the acquisition. Young informed him that Deephaven might be interested in financing the equipment. Staff is asking for Council to authorize working with the EFD, and if necessary the City of Deephaven, to enter into a lease - purchase agreement. The agreement will then be presented to Council for approval. He noted he has prepared a draft agreement, but that may change if Deephaven also participates in financing the acquisition. Mayor Lizee asked if Deephaven's desire is to be considered will delay the acquisition of the SCBA equipment. Administrator Heck stated it's his understanding that EFD Chief Gerber can order the equipment and have it invoiced for 2011, noting he will verify that during the December 15 EFD Operating Committee meeting. He noted the pricing of the equipment will be determined through the joint and cooperative agreement for the acquisition and use of public safety equipment. Councilmember Turgeon stated there could be organizations besides just the member cities that may want to provide financing for the acquisition. She expressed this should be a multi -city discussion. She stated in order to get the best financing rate it should be done through a request for proposal (RFP) process. She then stated the EFD 2011 — 2031 CIP, which the member cities approved, reflected the SCBA equipment would be replaced in 2014. She noted her comments are not intended to mean that she doesn't think the SCBA equipment is not important. She stated she thought that changing a CIP that was approved earlier this year could set a bad precedent. From her perspective, the cities would have to fund an additional $160,000. She commented the cities have to make a required contribution to the Excelsior Firefighters Relief Association (EFRA) fund for pensions. She stated she thought all five member cities should have some say in changing the replacement cycle and deciding on the financing approach. Councilmember Bailey explained the EFD Board was comfortable with replacing the SCBA equipment in 2011 rather than waiting until 2014 because the economics worked out. He clarified there is not a $160,000 incremental cost for changing the replacement cycle and financing the acquisition with a lease - purchase arrangement. He noted the EFD Boardmembers, who represent the member cities, approved the change to the replacement cycle and going with a lease - purchase financing arrangement. Councilmember Turgeon reiterated that she thought all the member cities should have had the opportunity to discuss this. Administrator Heck stated that EFD Chief Gerber and EFD Fiscal Agent Young prepared a comprehensive financial analysis comparing the costs of 15 -year purchase option and a 10 -year lease - purchase option. He explained the EFD joint powers organization and the EFD Board makes these types CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES December 13, 2010 Page 9 of 14 of decisions. Member city councils can be made aware of what is happening but they do not have the authority to override decisions the EFD Board makes. That is the same for the South Lake Minnetonka Police Department Coordinating Committee. Heck then stated that Deephaven City Administrator Young has contacted the Deephaven City Attorney to verify if it's legal for Deephaven to participate in a lease purchase agreement with the EFD. He noted that Attorney Tietjen stated the City can do the lease - purchase financing. He stated he thought Deephaven and Shorewood were the only member cities that could provide the financing for the acquisition. The other three member cities are willing to have the City or Deephaven finance the acquisition because it would save the EFD and ultimately the member cities money. If this was handled through a competitive RFP process the acquisition of the equipment will be delayed two to three months. Heck explained that it's not possible to replace just some of the SCBAs or some components of the SCBAs. He stated the EFD Board agrees with EFD Chief Gerber that the SCBA equipment is critical and the economics of replacing the equipment in 2011 makes sense. He noted replacing the equipment in 2011 rather than in 2014 does not increase the capital outlay. It makes the outlay relatively level. At the end of the five -year lease - purchase agreement the EFD will own the equipment for five years before it's replaced again. Heck stated his concern is with the projected interest rate. He noted that the City can't get a return of 1.5 percent on a five -year note. Heck asked Council to authorize Director DeJong and him to work with any member city that wants to participate and with EFD Chief Gerber to prepare a lease - purchase agreement for the replacement of SCBA equipment in 2011. Councilmember Turgeon requested the City get a legal opinion about whether or not the City or any other member city can do this because the EFD is a joint powers organization. Administrator Heck reiterated that Attorney Tietjen has told him the City can do the lease - purchase financing. Councilmember Zerby recommended this be done quickly because the pass devices on the current SCBAs are not working the way they should. The devices give an audible when a firefighter gets hurt and goes down. Liz& moved, Zerby seconded, authorizing staff to work with the Excelsior Fire District to develop an acceptable lease - purchase agreement for the financing of self contained breathing apparatus equipment and to prepare and bring back to Council for approval the agreement and resolution. Councilmember Woodruff stated when Staff comes back with the proposed agreement he would also like Staff to discuss where the money would come from. He explained a decision was made during the budget process not to fund the Equipment Fund at the level it needs to be funded. Staff's recommendation is to fund the SCBA acquisition out of that Fund. He suggested Council consider funding it out of the Community Infrastructure Fund. Councilmember Bailey stated he thought Administrator Heck was very resourceful in bringing this idea forward. Motion passed 510. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES December 13, 2010 Page 10 of 14 C. GASB 54 Discussion Director DeJong stated the meeting packet includes a document describing the GASB 54 changes that will be implemented for preparing the City's financial statements. He explained there are two major components. Component one is fund balance designations. The City doesn't have any special revenue funds. Special revenue funds need to have designated revenue sources going in to them. The remainder of the funds will be listed as assigned fund balance for a specific purpose. There is nothing that really has to be done at this time. DeJong then explained the second major component is a change in fund type definitions. He indicated the Liquor Fund is listed as an enterprise fund, however, there are no revenues coming into the fund except for interest and thus does not qualify as an enterprise. He explained if the Liquor Fund remains as is, it is likely the funds would move to the General Fund increasing the General Fund balance well above the level specified in the General Fund Balance Policy. Staff proposes moving the funds in the Liquor Fund into the Community Infrastructure Fund. DeJong stated guidelines have not been established for the use of the Community Infrastructure Fund. It's his understanding that there had been discussion that the Fund could be used to make revolving loans. He noted there are challenges with the City trying to repay that Fund with interest from another City fund. He stated Staff needs to research this further. He then stated using funds in the Infrastructure Fund to finance the lease - purchase of the Excelsior Fire District's self contained breathing apparatus equipment is most in line with what the Fund should be used for. DeJong stated Staff recommends transferring the balance of approximately $840,000 in the Liquor Fund to the Community Infrastructure Fund with the balance to remain unspent, except for a $40,000 transfer to the General Fund as authorized by the 2011 General Fund Budget. Turgeon moved, Woodruff seconded, Adopting RESOLUTION NO. 10 -058 "A Resolution Authorizing Liquor Fund Equity Transfer." Motion passed 510. D. Delegation of Authority for Paying Certain Claims Director DeJong stated the City has 2005A and 2006A General Obligation Water Revenue bond payments due on January 1, 2011. Staff is asking for the authority to make the payments by wire transfer. He explained that Minnesota Statutes Chapter 412 allows Council to delegate the authority to pay certain claims outside of the normal process of bringing all claims back to the Council. He stated Staff is also asking for the authority to make payments on a regular basis for regular claims when a Council meeting is not held because of lack of business. State Statute stipulates claims have to be paid within 35 days of receipt. These claims would be presented to Council for confirmation during its next regular meeting. Turgeon moved, Zerby seconded, Adopting RESOLUTION NO. 10 -059 "A Resolution Delegating Authority for Paying Certain Claims." Councilmember Woodruff asked if the bond payments are made by the Shorewood Economic Development Authority (EDA) or by the City. Director DeJong reiterated the payments are for the General Obligation Water Revenue bonds. Woodruff stated the EDA should pass a similar resolution. DeJong stated the EDA will meet in January 2011. Motion passed 510. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES December 13, 2010 Page 11 of 14 E. City Administrator's Performance Evaluation Mayor Lizee stated the City is required by contract with Administrator Heck to perform a performance evaluation by the full City Council each December. Council met in executive session on December 6, 2010, and again prior to this meeting to finalize the evaluation. Heck joined this evening's executive session part way through to hear the evaluation. She then stated that Councilmember Woodruff has requested that he provide a report on sessions. Councilmember Woodruff stated Council did meet to review Administrator Heck's performance. The average of the Councilmembers' ratings indicates his performance to be at the high end of meeting expectations. He then stated Council needs to consider extending Heck's contract which expires at the end of 2010. Council also needs to take action, if it wants, on making any salary change to take effect in 2011 and any other salary actions Council deems appropriate. Woodruff moved, Turgeon seconded, extending City Administrator Brian Heck's contract with the City to the end of 2012; increasing his base salary by approximately 6.3 percent ($6,000) effective January 1, 2011; and, awarding him a one -time performance payment in 2010 in the amount of $2,500 to recognize the significant strides Heck has made in the City in 2010 with the payment coming out of the 2010 budget. Councilmember Bailey stated he enjoyed working with Administrator Heck during over the past two years. He then stated he thought that Heck brought operational innovations to Council and Staff that have been very effective in terms of planning and reporting to Council. He thanked Heck for that and stated he expected more great things in the future. Motion passed 510. F. Minnehaha Creek Watershed District Water Plan Amendment Proposal Administrator Heck stated that about a month ago he sent Council information from the Minnehaha Creek Watershed District (MCWD) regarding a proposal to amend their water management plan to include a section on aquatic invasive species (AIS). The MCWD asked cities within its jurisdiction to submit comments regarding the proposed amendment to the MCWD by January 7, 2011. Being this is the last meeting scheduled in 2010 he suggested Council decide if it wants Staff to respond to the MCWD and if so what should the response be. Heck explained the proposed amendment would give the MCWD the authority to promulgate rules on docks, watercraft, and other equipment that use water bodies located in the MCWD to control the spread of AIS. Heck stated there are a number of jurisdictions such as the Department of Natural Resources (DNR), the Lake Minnetonka Conservation District (LMCD), the Lake Minnetonka Association (LMA), Hennepin County, cities and others that have some regulatory authority. He questioned how many jurisdictions need to manage the same things. He stated he wondered if some of the regulatory authority could be combined and given to one agency. He noted the MCWD has not decided if it would impose any rules. Mayor Lizee stated the MCWD is seeking input about their proposed amendment. She suggested Councilmembers direct their comments or questions to Administrator Heck and then Heck can compile the information and share it with the MCWD. She stated she thought this is just the beginning of a lengthy discussion on this issue. She then stated there isn't any action Council can take this evening. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES December 13, 2010 Page 12 of 14 Councilmember Woodruff stated when the MCWD was discussing proposed changes to some of its other rules earlier this year the MCWD expressed frustration that the cities in the MCWD provided their inputs to the MCWD late in the process. He suggested the City start now if it wants to provide any input into this process. Woodruff then stated during its December 8 LMCD meeting the board reviewed the proposed amendment and discussed the potential for the MCWD to have considerable overlap with what other agencies, including the LMCD, are doing or intend to do. He suggested the City provide something similar to what's stated in the resolution the LMCD adopted during that meeting. The highlights of the resolution are as follows. The LMCD is not in favor of the MCWD unilaterally taking over the programs noted in the minor plan amendment. The LMCD encourages the MCWD to work with the LMCD, the DNR and other local agencies, including LMCD member cities, to identify ways to use funding on a proactive basis for Lake Minnetonka. The LMCD realizes the MCWD has responsibility for other water bodies located in the MCWD. The LMCD recommends Lake Minnetonka be an exception to the amendment to the MCWD's water management plan and that a high degree of cooperation among the regulating agencies needs to be achieved. Councilmember Zerby stated he appreciated Councilmember Woodruff presenting the LMCD's position. He then stated AIS are transported from water body to water body. Therefore, he thought an agency with broader governance is better suited to deal with AIS on a larger scale. He expressed support for the MCWD being more involved with the AIS issue. He stated a lot has to do with where the funding comes from, and he noted the MCWD has a larger tax base. He clarified that ideally he would like the DNR to lead the charge on AIS. He thought the MCWD being more involved is a good step toward that happening. Mayor Lizee stated with the explosion of AIS and knowing that there are other threats that are coming to lakes in Minnesota and the upper Midwest there needs to be an agency working on this that has the staff and funding to do research. She stated this is just the first step in a process. She expressed her appreciation for the MCWD stepping up to this challenge, noting the MCWD has the capability to work with the cities and put this in the forefront. Mayor Lizee expressed she would be very uncomfortable putting together any resolution this evening. Councilmember Woodruff stated he appreciated Mayor Lizee's position. He then stated the amendment would create the potential for overlap of jurisdiction and authority for various activities on Lake Minnetonka. For example, the MCWD is proposing it be able to regulate docks; the LMCD already regulates docks as do other entities. He stated based on what he heard during the recent LMCD Board meeting the MCWD isn't sure it can legally do what it is proposing. He noted he will not force a motion. G. 2010 Fund Equity Transfers This item was removed from the consent agenda at Councilmember Woodruffs request. Councilmember Woodruff stated he has no problem with Staffs recommendation to transfer $68,000 from Fund 499 to Fund 307 to retire debt service. The construction project is complete so the funds should be applied to the bond payment. He asked Staff to see if the unspent funds can be used differently or if they can be used to reduce the cities 2011 contributions to the public safety organizations bond payments based on the formula. CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES December 13, 2010 Page 13 of 14 Director DeJong stated he researched the history of the project and reviewed the financial reports dating back to 2002 and there is no good way to determine, from the City's records, which part of the construction the funds are from. Staff is recommending allocating the unspent funds based on the original formula. The amounts are approximately: $5,060,000 for the police public safety facility; $5,245,000 for the west fire station: and, $2,060,000 for the east fire station. Staff is planning to adjust the invoice bond payments by the amount already in the bond fund. Councilmember Woodruff stated the EFD has an unfunded pension liability for the Excelsior Firefighters Relief Association fund for pensions and it could benefit from some of the unspent funds. He assumed the SLMPD also has needs. He questioned if it would be better to leave the member cities contributions as is and redirect the unspent funds to help the organizations with reduce budget constraints. He asked Staff to work with the SLMPD Coordinating Committee and the EFD Governing Board on this. Woodruff moved, Bailey seconded, Adopting RESOLUTION NO. 10 -056 "A Resolution Authorizing 2010 Fund Equity Transfers." Motion passed 510. 11. STAFF AND COUNCIL REPORTS A. Administrator and Staff Director Nielsen provided an update on the 2011 Deer Management Program. He said the hunters took 21 deer this year. The weather had a negative impact on this year's removal effort. One weekend was unseasonably warm and another weekend there was an ice storm. He noted that the vast majority of calls the City received about the program were to ask if deer could be removed from residential properties. He then stated that T- Mobile withdrew its application to add an antenna on the SE Area Water Tower and will add an antenna under the existing lease. Administrator Heck stated there is an EFD Operating Committee meeting schedule for December 15, 2010. He then sated he appreciated working with Councilmembers Bailey and Turgeon. 1. October 2010 Financial Report Director DeJong stated the meeting packet contains a copy of the October 2010 General Fund Monthly Budget Report. He explained he made to changes to the report's format. He added a prior month column for the current budget year to aid in making comparisons. He also limited the expected budget expenditures to 100 percent. Council thanked Director DeJong for making the changes. B. Mayor and City Council Councilmember Woodruff asked Director Brown to provide an update on the rehabilitation project for Lift Stations located on Enchanted Island. Director Brown explained the control panels for Lift Stations were damaged during delivery. The plan was to startup Lift Station 15 on Enchanted Drive on December IO The City anticipates the replacement panels will be delivered on December 17 Brown stated the contractors are working together and will cover any extra costs. He then stated he directed the general contractor not to begin work on Lift Station 17 until the City receives the control panels. Councilmember Zerby thanked Director Brown and his Public Works crew for the outstanding job it did in cleaning the streets during the fifth worst winter storm on record this past weekend. He noted the City CITY OF SHOREWOOD REGULAR COUNCIL MEETING MINUTES December 13, 2010 Page 14 of 14 was down one plow. He stated he received a lot of good feedback on how the crew handled things. He thanked Brown and his crew. Councilmember Turgeon also thanked Director Brown and his crew. She challenged the incoming Council to consider creating a snow emergency policy. Administrator Heck stated the City does have a snow emergency ordinance and the mayor calls the snow emergency. Heck stated Director Brown, Engineer Landini and he discussed revising the ordinance so it is more consistent with other cities ordinances. Mayor Lizde stated she thought it would behoove the City to talk with its neighboring cites because the City's Public Work's crew drives through each of the five cities to get to roads in the City. She suggested that occur in January 2011. Mayor Lizde wished all a Merry Christmas and a Happy New Year, 12. ADJOURN Turgeon moved, Bailey seconded, Adjourning the City Council Regular Meeting of December 13, 2010, at 8:45 P.M. Motion passed 510. RESPECTFULLY SUBMITTED Christine Freeman, Recorder MWaaWw Christine Lizde, Mayor